MIDSTATES PETROLEUM COMPANY INC Midstates Petroleum Company, Inc. (NYSE:MPO) (the "Company") and its wholly-owned subsidiary Midstates Petroleum Company LLC announced today that, as a result of its lenders' semiannual review, the borrowing base under its revolving credit facility has been reaffirmed at $525 million, with no reduction upon the anticipated closing in April of the Dequincy property sale. The Company also amended the leverage ratio covenant associated with the borrowing base to expand it to 4.5 times through December 31, 2015. The borrowing base is supported solely by the Company's Midcontinent assets and on December 31, 2014, the Company had $435 million drawn under this facility.
Jake Brace, President and CEO, stated, “This is another positive step and reconfirms the strength of our premier Mississippian Lime position as well as our growth in production and proved reserves. The combination of our strong 2015 hedge position, continued focus on aggressively managing our level of capital expenditures and the proceeds from the pending sale of our Dequincy assets will give us time to thoughtfully proceed with our review of options to further enhance our liquidity and provide financial flexibility.”
Other Information
Certain statements in this news release regarding future expectations and plans for future activities may be regarded as “forward looking statements” within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as financial market conditions, changes in commodities prices and costs of drilling and completion, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates’ drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company’s operations also include the upper Gulf Coast tertiary trend in central Louisiana. Additional information about the Company is available at www.midstatespetroleum.com.
